The Court granted the plaintiffs' motion to remand. It reasoned that it only had jurisdiction under the New York Convention and Chapter 2 of the Federal Arbitration Act, the Convention's implementing legislation, over proceedings in which a party sought to compel arbitration, enjoin or stay an arbitration, or enjoin a proceeding in aid of arbitration. In the present case, the plaintiffs' state court action sought a declaration that certain loan agreements between the parties were unenforceable sham loan agreements and an injunction barring defendants from enforcing these agreements. Such action did not fall under any of the federal jurisdiction categories.